Victoria PLC, the international flooring group, has reported a decline in sales as losses widened.
According to its audited results for the year ended 28 March 2026, total sales declined 6.3% to £1bn from £1.1bn in 2025.
Underlying EBITDA resulted at £92.3m, down from £113.7m, while pre-tax losses stood at £62m, widening from a loss of £11.5m.
During the year, Victoria made significant operational progress, further integrating the business, executing cost saving initiatives and commissioning more efficient production capacity despite the continuation of a challenging trading environment.
The business successfully refinanced all of its material debt maturing in 2026 in August 2025, and on 8 July 2026 announced the refinancing of its bonds maturing in March 2028 and KED Victoria Holdings LLC’s holding of Preferred Shares to significantly strengthen the financial position of Victoria.
On 23 July 2026, the company announced holders representing over 90% of its bonds maturing in March 2028 have acceded to the Transaction Support Agreement, meeting the necessary threshold required to implement it by way of a consent solicitation.
Victoria added that market conditions in H2 were much weaker than anticipated, however, Q1 FY2027 trading has been “encouraging, demonstrating growth in volumes and revenue”.
“UK & Europe Soft Flooring secured market share gains and operational improvements in the UK business, which were temporarily masked by the impact of the reorganisation of the European rugs business. This reorganisation is now well advanced, with completion expected in Q3 FY2027.
“UK & Europe Ceramic Tiles had a challenging year with revenue and margins under pressure due to weak market conditions. In Italy, production has been consolidated with one site exited in March 2026 which will generate savings throughout FY2027, and in Spain, the new, more efficient V4 production line became operational at the end of Q3.
“Australia delivered year on year growth in revenue and EBITDA, supported by market share gains, tight cost discipline and the launch of a new value brand, Wonderlay. Closer collaboration between our three Australian business units has also commenced with a new holding structure implemented.
“North America performance was impacted by tough trading continuing from FY2025. Repositioning the CALI business model from B2C to B2B during FY2026 alongside other self-help initiatives launched at the start of FY2027 position the division for improved performance.”
Looking ahead, Q1 FY2027 demonstrated growth in volumes, up c.3%, and revenue, up c.7%, with profitability ahead of Q1 FY2026 despite price and cost volatility caused by the Iran conflict.
“Market share gains in the UK and Australia are expected to continue due to competitors struggling/withdrawing, and new client wins in the US are expected to benefit the balance of the year,” the group added.
“The Board remains conscious of macroeconomic factors outside of its control and therefore we currently expect to deliver at least £115m EBITDA in FY2027. This guidance reflects top line growth from market share gains, expected temporary margin dilution due to higher input prices from the Iran conflict, and lower starting volumes delaying the full benefit of certain EBITDA improvement initiatives in FY2027.”
Commenting on Victoria’s Outlook, Geoff Wilding, Executive Chairman, said: “We believe Victoria is well placed to benefit as conditions improve. Victoria is adapting and each 5% increase in volume is expected to contribute approximately £20 million to Victoria’s operating profit.
“Pre-IFRS16 EBITDA margins are currently less than half of the ten-year average which highlights the significant recovery potential of the Group.
“We have a detailed plan to improve earnings and cash flow and are laser-focused on its execution to restore Victoria’s decade-long reputation as an exceptional creator of shareholder value.”
